MIDIS delivers innovative £140 million CPI-linked long-term infrastructure debt for Banks Renewables
London, 02 Mar 2017
Macquarie Infrastructure Debt Investment Solutions (MIDIS) has structured new long-term debt facilities for Durham-headquartered Banks Renewables, the renewable energy division of the Banks Group, delivering over £140 million of infrastructure project financing debt on behalf of its investors.
The investment is part of a £210 million debt package co-arranged by MIDIS and Santander and will be used to finance the construction and operation of three onshore wind farms which benefit from Contracts for Difference – two in South Lanarkshire in Scotland (Kype Muir and Middle Muir), and one near Darlington in North East England (Moor House).
The wind farms have a combined installed capacity of 151MW, which is enough to power over 100,000 UK homes. The long-term MIDIS facilities sit next to shorter dated commercial bank facilities and together form a mix of amortising fixed-rate and CPI-linked debt. This follows MIDIS’ CPI-linked financing for Tees Renewable Energy Plant which also benefits from a UK Government-supported Contract for Difference.
The transaction represents a further step in Banks Renewables' transition towards a company that derives a substantial part of their cashflows from the renewables sector.
Kit Hamilton, head of the investment team at MIDIS said: “We are pleased to have delivered these long-term debt facilities for this important project, which is yet Macquarie Group of Companies another example of MIDIS’ ability to deliver unique funding solutions for the benefit of a number of stakeholders, including institutional investors and borrowers.”
Since 2012, MIDIS has invested over £1 billion in renewables transactions globally, across 17 projects, totaling approximately 2.3GW of installed capacity.
Simon Fisher, group finance director at the Banks Group, said: "The support we have received from MIDIS and all our financial backers is a real expression of confidence in both Banks Renewables and the wider UK onshore wind sector. Onshore wind represents the best value renewable energy technology for UK bill payers, and it's exciting to now be accelerating the process of taking these three wind farms forward."
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 13,800 people in over 27 countries. At 30 September 2016, Macquarie had assets under management of £291.4 billion.
Macquarie has been an active investor and adviser in the renewable energy and clean technology sectors for over 15 years. Drawing on its global network, sector expertise and strong record, Macquarie is supporting the transition to a lower carbon economy by servicing clients across various renewable energy technologies. Since 2010 Macquarie and Macquarie-managed funds have invested or arranged over £8.5 billion of capital into renewable projects globally.
About Macquarie Infrastructure Debt Investment Solutions
In early 2012 Macquarie established the Macquarie Infrastructure Debt Investment Solutions (MIDIS) platform to leverage the infrastructure expertise within Macquarie into an investor-aligned global infrastructure debt investment management business. The MIDIS platform has been successful in securing mandates with insurer and pension scheme clients and has a track record of investing at attractive yields.